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How does industry specialization affect the efficiency of regional innovation systems?

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  • Michael Fritsch

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  • Viktor Slavtchev

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Abstract

This study analyzes the relationship between the specialization of a region in certain industries and the efficiency of the region in generating new knowledge. The efficiency measure is constructed by relating regional R&D input and output. An inversely u-shaped relationship is found between regional specialization and R&D efficiency, indicating the presence of externalities of both Marshall and Jacobs’ type. Further factors influencing efficiency are spillovers within the private sector as well as from public research institutions. The impact of both the specialization and the additional factors is, however, different for regions at different efficiency levels.
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Suggested Citation

  • Michael Fritsch & Viktor Slavtchev, 2010. "How does industry specialization affect the efficiency of regional innovation systems?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 87-108, August.
  • Handle: RePEc:spr:anresc:v:45:y:2010:i:1:p:87-108
    DOI: 10.1007/s00168-009-0292-9
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    Cited by:

    1. Schwartz, Michael & Peglow, Francois & Fritsch, Michael & Günther, Jutta, 2010. "What Determines the Innovative Success of Subsidized Collaborative R&D Projects? – Project-Level Evidence from Germany –," IWH Discussion Papers 7/2010, Halle Institute for Economic Research (IWH).
    2. Schimke, Antje & Teichert, Nina & Ott, Ingrid, 2012. "Impact of local knowledge endowment on employment growth in nanotechnology," Working Paper Series in Economics 38, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
    3. Bernhard Dachs & Bernd Ebersberger & Steffen Kinkel & Oliver Som, 2015. "The effects of production offshoring on R&D and innovation in the home country," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 9-31, March.
    4. Yuandi Wang & Xin Pan & Lutao Ning & Jian Li & Jin Chen, 2015. "Technology exchange patterns in China: an analysis of regional data," The Journal of Technology Transfer, Springer, vol. 40(2), pages 252-272, April.
    5. Michael Fritsch & Holger Graf, 2010. "How General Conditions Affect Regional Innovation Systems - The Case of the Two Germanys," Jena Economic Research Papers 2010-054, Friedrich-Schiller-University Jena.
    6. repec:taf:regstd:v:52:y:2018:i:7:p:948-958 is not listed on IDEAS
    7. Paul Bishop, 2012. "Knowledge, diversity and entrepreneurship: a spatial analysis of new firm formation in Great Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(7-8), pages 641-660.
    8. repec:spr:anresc:v:59:y:2017:i:1:d:10.1007_s00168-017-0818-5 is not listed on IDEAS
    9. Jingjing Liu & Peter Nijkamp, 2016. "Inbound tourism as a driving force of the regional innovation system: An impact study on China," ERSA conference papers ersa16p600, European Regional Science Association.
    10. repec:eee:jomega:v:74:y:2018:i:c:p:103-114 is not listed on IDEAS
    11. Schwartz, Michael & Hornych, Christoph, 2009. "Industry Concentration and Regional Innovative Performance – Empirical Evidence for Eastern Germany," IWH Discussion Papers 8/2009, Halle Institute for Economic Research (IWH).
    12. repec:gam:jsusta:v:10:y:2018:i:2:p:489-:d:131545 is not listed on IDEAS
    13. Chen Kaihua & Kou Mingting, 2014. "Staged efficiency and its determinants of regional innovation systems: a two-step analytical procedure," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 627-657, March.
    14. repec:spr:jahrfr:v:37:y:2017:i:2:d:10.1007_s10037-017-0116-9 is not listed on IDEAS
    15. repec:spr:anresc:v:59:y:2017:i:2:d:10.1007_s00168-017-0843-4 is not listed on IDEAS
    16. Chen, Kaihua & Guan, Jiancheng, 2011. "Mapping the functionality of China's regional innovation systems: A structural approach," China Economic Review, Elsevier, vol. 22(1), pages 11-27, March.
    17. Kleoniki Kalapouti & Nikos Varsakelis, 2015. "Intra and inter: regional knowledge spillovers in European Union," The Journal of Technology Transfer, Springer, vol. 40(5), pages 760-781, October.
    18. Helen McGuirk & Declan Jordan, 2011. "Local Labour Market Diversity and Business Innovation: Evidence from Irish Manufacturing Businesses," European Planning Studies, Taylor & Francis Journals, vol. 20(12), pages 1945-1960, June.

    More about this item

    Keywords

    O31; O18; R12;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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